TCPL Packaging share prices rallied as much as 9.8 percent intraday to Rs 570 on November 4, the Diwali Muhurat Trading 2021 Day, after the acquisition of major stake in Creative Offset Printers.
The packaging solutions provider said it had approved the acquisition of a majority stake in Creative Offset Printers (COPPL).
"The company has entered into a definitive share purchase agreement to acquire 60 percent equity stake of COPPL."
With this acquisition, TCPL said it entered into the high potential rigid boxes segment focused on one of the fastest growing smartphone markets in the world.
COPPL's manufacturing facility is strategically located at Noida to target the large upcoming mobile manufacturing hub in India.
Meanwhile, TCPL Packaging reported one percent year-on-year increase in profit at Rs 10.6 crore for the quarter ended September 2021, impacted by higher raw material prices. Total revenue in the said period stood at Rs 253.41 crore, rising 3.1 percent compared to Rs 245.79 crore revenue in the corresponding period last fiscal.
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"TCPL has shown strong resilience and achieved another quarter of steady performance amidst a challenging operating environment. While gross margins were impacted owing to rising raw material prices, we were able to minimize the impact on EBITDA margins by managing operating costs," said Saket Kanoria, Managing Director.
"We continue to see raw material inflation in the ongoing quarter; however, we are working with our customers to undertake adequate price hikes to normalize margins," he added.
TCPL Packaging share price traded higher at Rs 541, up 4.23 percent on the BSE, at 18:55 hour IST.
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